Accredo Health Acquires BioPartners In Care, Inc.

Business Editors, Health/Medical Writers

MEMPHIS, Tenn.--(BW HealthWire)--Dec. 20, 2001

Accredo Health, Incorporated (NASDAQ:ACDO) today announced that it had acquired 100% of the outstanding stock of privately-held BioPartners In Care, Inc. BioPartners is a leading provider of pharmaceutical care for certain chronic, long-term patient populations, including those requiring hemophilia clotting factor and intravenous immunoglobulin ("IVIG"). BioPartners serves patients throughout the Midwest.

BioPartners has pharmacy locations in Lenexa, Kansas and St. Louis, Missouri. The seven founding principals of BioPartners will continue in their present capacities and will operate and lead BioPartners' future growth and expansion. "The management team at BioPartners represents significant experience in the hemophilia and IVIG market. We are excited about adding their abilities to help us manage our future growth," said Accredo Health Chairman and CEO David D. Stevens.

The purchase price consists of an all-cash payment of approximately $37.0 million, plus a potential earn-out. "BioPartners In Care, Inc. had revenues of approximately $27.3 million in the 12-month period ended June 30, 2001. We expect this acquisition to be immediately accretive to Accredo Health's earnings," stated Mr. Stevens, "adding approximately ten to twelve cents per share to our existing estimates in calendar 2002."

Brian Berg, president of BioPartners In Care, Inc., commented, "We are pleased to be joining Accredo's exceptional team of companies and look forward to contributing to the continuing success and growth of Accredo."

Accredo Health currently services the hemophilia and related bleeding disorders community through its subsidiary, Hemophilia Health Services, Inc., located in Nashville, Tennessee. Accredo is also engaged the IVIG business, primarily through its subsidiaries located in Norcross, Georgia, and Elmsford, New York. Hemophilia Health Services President Kyle J. Callahan said, "BioPartners' resources and expertise in the hemophilia market are complementary to our existing business and provide us the opportunity to continue our expansion as a national supplier of clotting factor. Their IVIG business becomes our third purchase of an IVIG company within the last two years and follows our strategy of purchasing strong regional providers as we further penetrate the national IVIG market."

Accredo Health, Incorporated provides specialized contract pharmacy and related services pursuant to agreements with biotechnology drug manufacturers relating to the treatment of patients with certain costly, chronic diseases. The company's services include collection of timely drug utilization and patient compliance information, patient education and monitoring through the use of written materials and telephonic consultation, reimbursement expertise and overnight drug delivery.

In addition to historical information, certain of the statements in the preceding paragraphs, particularly those anticipating future financial performance, business prospects and growth and operating strategies constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as anticipate, believe, estimate, expect, intend, predict, hope or similar expressions. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, the loss of a biopharmaceutical relationship, our inability to sell existing products, the impact of pharmaceutical industry regulation, the difficulty of predicting FDA and other regulatory authority approvals, the regulatory environment and changes in healthcare policies and structure, acceptance and demand for new pharmaceutical products and new therapies, the impact of competitive products and pricing, the ability to obtain products from suppliers, reliance on strategic alliances, the ability to expand through joint ventures and acquisitions, the ability to maintain pricing arrangements with suppliers that preserve margins, the need for and ability to obtain additional capital, the seasonality and variability of operating results, the Company's ability to implement its strategies and achieve its objectives and the risks and uncertainties described in reports filed by Accredo with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation, cautionary statements made in Accredo's 2001 Annual Report on Form 10-K and Accredo's latest quarterly report on 10-Q under the heading "Risk Factors."